Exhibit 12.1
RATIO OF EARNINGS TO FIXED CHARGES
(unaudited)
(dollars in millions)
December 31, | ||||||||||||||||||||||
2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||||||
Income before income taxes and non-controlling interests | $ | 1,019 | $ | 1,823 | $ | 528 | $ | 376 | $ | 200 | ||||||||||||
Less: Non-controlling interests | (155 | ) | 364 | 16 | 3 | 5 | ||||||||||||||||
Pre-tax income, net of non-controlling interests | 1,174 | 1,459 | 512 | 373 | 195 | |||||||||||||||||
Add: | Fixed charges | 99 | 77 | 22 | 15 | 6 | ||||||||||||||||
Distributions from earnings from equity method investees | 28 | 23 | 2 | 3 | 2 | |||||||||||||||||
Less: | Loss (earnings) from equity method investees | 294 | (84 | ) | (6 | ) | (12 | ) | (3 | ) | ||||||||||||
Pre-tax income before fixed charges | $ | 1,595 | $ | 1,475 | $ | 530 | $ | 379 | $ | 200 | ||||||||||||
Fixed charges: | ||||||||||||||||||||||
Interest expense | $ | 66 | $ | 49 | $ | 10 | $ | 8 | $ | 1 | ||||||||||||
Interest expense on uncertain tax positions1 | 5 | 2 | — | — | — | |||||||||||||||||
Portion of rent representative of interest | 28 | 26 | 12 | 7 | 5 | |||||||||||||||||
Total fixed charges | $ | 99 | $ | 77 | $ | 22 | $ | 15 | $ | 6 | ||||||||||||
Ratio of earnings to fixed charges | 16.1 | x | 19.2 | x | 24.1 | x | 25.3 | x | 33.3 | x | ||||||||||||
1 | Interest expense on uncertain tax positions, in accordance with FIN No. 48, has been recorded within income tax expense on the consolidated statements of income. |